17. Mr. Jim Callaghan
asked the Secretary of State for Transport if he will make a statement on the inter-city rail strategy.
§ Mr. Ridley
The strategy study charts the path to a profitable inter-city sector in 1988–89. This is very welcome. I shall, therefore, be writing to the chairman of British Rail to confirm that the target for the sector is to achieve a 5 per cent. return on its capital assets by 1988–89 and to say that inter-city will be ineligible for PSO grant from that year.